What is Microfinance• “Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self- employed, who traditionally lack access to banking and related services.”
Features of Microfinance:• Borrowers are from the low income group• Loans are of small amount – micro loans• Short duration loans• Loans are offered without collaterals• High frequency of repayment• Loans are generally taken for income generation purpose
Credit AssistantCredit assistant are the base of the MFI As we know every big building has a base and only the strong base can give beautiful shape to any building. same as in MFI credit assistant play very vital role for the Business. Because CA are, of those employee who are close to customer.
UPPERLEVEL (CEO,MD,VP AND ALL) MIDDLE LEVEL(MANAGER AND OTHER) LOWER LEVEL (CREDIT ASSISTANT)
Schedule of the credit assistant Branch Office 6.00 am to 6:30 am EveningField 4.00 DAY OF Morning Fieldpm to 7.00 pm A CA 6:30 am to 11.00 am Branch Office 11.00 am to 2.00 pm
. Key activities performed by a CA• CA Responsible for identifying villages, conducting village surveys, and introductory meetings (along with the Branch Managers).1. Responsible for formation of groups (members/borrowers) for the growth of the organisation2. Responsible for imparting training to prospective borrowers.3. Responsible for taking the loan application of the members. His recommendation would be the key input for arriving at a loan decision.4. To conduct centre meetings as per scheduled time and at a scheduled place.5. Responsible for sincerely carrying out, all the responsibilities allocated to him/her by the Branch Manager or Head Office from time to time.6. Responsible for the cash collected and cash taken for disbursements in the centre meetings, till it is properly handed over to the Cashier at the Branch office.7. Responsible for the following documentation/System work at the branch 1. Filling up of centre registers, loan cards, Applications and LD vouchers 2. Entry of recovery, LD and preclosed loan details 3. Submission of cash as per collections with denomination slips, updating DCB, DFS 4. Entering centre wise R&P in SIMS-GL 5. Update operations register, Movement Register, TA Book on a daily basis8. Responsible for the publicity of the organization at the village level. Credit assistants should spread information about all the loan products of the Organisation to the people.9. Responsible for training new staff who get allocated to him/her, as a part of the training program.
• Delinquency Management: In case of delinquency / default, CA has to manage the situation diplomatically without hurting the feelings of borrowers. He should motivate other group members to help the delinquent client as promised at the time of loan disbursement. CA should inform the BM well in time and seek his support as required. CA should not become impatient and shout at the borrowers. He should not leave the slum / village without recovery. CA as demanded by the situation, should wait until the group collectively manage to repay the installment. If the CA knows that a loan would fall delinquent, he should go and meet the client one day before the centre meeting and motivate her to repay loan on time. If the delinquent borrower has some genuine reason to delay / default the repayment, CA should discuss with the BM and well in advance and give her the required support.
Dataflow from client level transaction to monthly reports.• Filling up of centre registers• Submission of cash as per collections with denomination slips, updating DCB, DFS• Cash book (day to day)• Operation register – progress l/d, complete loan, recovery, total old loan, ALR closing by BM n check by RM• General ledger = outstanding, recovery
Who fills what?• Movement = every employee• Centre Register = CA• DCB = ca (check by BM)• DFS = CA (check by BM)• cashbook = CA or BM• Operation register = CA or BM• Acquaintance register (salary detail stamp) by Bm• Application form = CA (approve by BM)• Attendance register = by BM• Auditing remarks register = auditor• BM activity plan = by BM• CASH FLOW STATEMENTS (DCB & DFS)• Cash receipt and payment register=CA OR BM• Operation register = CA or BM
• Members dropout details register = CA or BM• General ledger (chashier)• Ca plan (every CA)
Points of check /verification• BM/RM should checks each and every ALR adjust DFS centre visit check cash check DCB ALR adjust register check why happen movement members attendance